What was the major economic challenge addressed in the Third Five-Year Plan?

The correct answer is War-time expenditure and resource allocation.

Key Points

• The Third Five-Year Plan (1961-1966) aimed to establish a self-reliant and self-generating economy in India.
• The major economic challenge addressed in the plan was the war-time expenditure and resource allocation due to the Indo-China War of 1962 and the Indo-Pak War of 1965.
• The plan had to be adjusted to accommodate increased defense spending and rehabilitation efforts.
• Despite these challenges, the plan also focused on agriculture, industry, and infrastructure development.
• The target growth rate was 5.6%, but the actual growth rate achieved was around 2.4%, partly due to the disruptions caused by the wars.

Additional Information

• Indo-China War of 1962
  • The conflict between India and China took place between October and November 1962.
  • It led to significant military expenditures and reallocation of resources in India.
  • The war ended with a Chinese ceasefire on November 21, 1962.
• Indo-Pak War of 1965
  • The war between India and Pakistan occurred from April to September 1965.
  • It led to substantial defense spending and resource diversion from developmental activities.
  • The war ended following a United Nations-mandated ceasefire.
• Impact on Agriculture
  • The focus on agriculture during the Third Five-Year Plan included the introduction of high-yielding variety seeds.
  • Significant investment was made in irrigation and fertilizer production to boost agricultural output.
• Industrial Growth
  • The plan emphasized the development of heavy industries and the establishment of new industrial enterprises.
  • However, the industrial growth was lower than expected due to resource diversion to defense needs.
• Infrastructure Development
  • Efforts were made to expand the transportation and communication networks.
  • Investment in infrastructure was crucial for long-term economic growth despite immediate challenges.